Best way to borrow for refurbishment

Bimbly

Around this time next year (August 2017), i want to do a big refrubishment of my house. Current projections are I will have £40k in savings and will borrow £20k. The issue is that £10k (ish) of that is in an Isa with a five year fixed rate which expires May 2018, so I need to leave that there until then.

Other than spending my savings, I intend to put about £10k on 0% interest creit cards (to be paid off later with isa money) and borrow £20k on a 5 year loan. I've never had problem with credit and would generally not have an issue, but am concerned that putting in a bunch of credit requests all at once could cause problems (will probably need 2 credit cards + loan). Is there an ideal way to time all my applications?

Loans above £20k are more expensive (although a few places do £25k), and rates for a loan secured on property are also higher. I don't want to re-mortgage as my interest rate is just 1% (0.75 above base).

I currently have one card with £6k on an interest free period which runs out October (I have money to pay it in the bank and haven't included that money in savings total). A second card has £2k+ on it with interest free which runs out in February. Both cards are paid via direct debit from my Club Lloyds account, allowing me go get my 4% interest rate (I don't really have any other dd's to use on this account, which makes the two cards extra handy).

How should I stagger my applications to maximise my chances of success in getting the credit that I'm after? I'm thinking I should maybe start now, as the 27month interest free periods on offer on many cards would be plenty for me. I'll probably be spending the money in Aug/Sept/Oct '17 (I can't put this refurb off any longer than that).

Many thanks for reading my post. This is my first on this forum.

[Deleted User]

How much would you lose by cashing in the isa early? Even if it was 1% for 6 months thats only £50

Bimbly

That's a very good point. I thought about that before ... Then forgot

I rang them. I would lose 120 days interest. So four months. About £100. Might be worth doing.

Bimbly

So, I guess, clear the credit cards (as planned) and apply for the loan. Cash in isa as late as possible.

Would it be a good idea to reduce credit available on the cards before applying for the loan? I guess it would be a good idea to cancel one of the cards before applying for a loan -- that takes a good month for banks to see it on the system, right? I need to keep both going at the moment with the direct debits to comply with conditions of getting interest on my Lloyds account. One of the cards is with my current bank, with whom I plan to get the loan, so that is a good one to keep as it shows good payment history.

In the meantime, shall I just pay off the cards and not apply for any more (no matter how good the deals) in order to make sure I get the loan that I need?

Just trying to get it all straight in my head.